Impact of Digital Marketing Mode and Reachability on the Firm Performance of SMEs

Abstract: The study was focused to explore the contribution of financial, management and technical resources on digital marketing mode and subsequent effect reachability on the firm performance of manufacturing SMEs from India. A descriptive and quantitative research design was adopted and a total of 368 participants working in manufacturing SMEs were selected for this study. The questionnaire was used to collect quantitative data on technical, financial and management resources, reachability and firm performance of SMEs. Collected data were statistically analysed using SPSS v24.0. We found that technical, financial and management resources were directly related to digital marketing mode. In addition, digital marketing mode had a significant influence on the firm performance of SMEs and this relationship was mediated by the reachability of digital marketing. It was found that efficient technical, financial and management resources enable digital marketing in SMEs and supports SMEs performance in terms of improved sales, gross profit and broadened consumer base. The study recommends SMEs should invest in technical, financial and management resources to adopt digital marketing mode and to reach different consumer segments. Further studies should include researches on a larger scale, with consumer perspective and on other service sector SMEs to identify the variability within the SMEs. Keywords: Adoption, Business Performance, Digital Marketing, India, SMEs